There are about 400 wineries in california’s napa valley. suppose the owner of one of the wineries—jerry’s wine emporium—raises the price of his wine by $5.00 per bottle. if the industry is perfectly competitive, the reaction of consumer would be to

a) buy more of jerry’s wine
b) buy some, but less of , jerry’s wine
c) buy wine from another winery
d) stop drinking wine

Which completes the equation? o + a + consideration (+ = k legal capacity legal capability legal injunction legal corporation

If quotas on sugar were eliminated in the united states, domestic production of sugar would fall. why is this a benefit in economic terms for the united states? i. resources are freed up that could be used more efficiently elsewhere. ii. it is beneficial because it allows foreign producers of sugar to earn income and thus those countries are better off. iii. u.s. consumers are able to enjoy increased consumer surplus because of the lower prices of imported sugar.

Anewspaper story on the effect of higher milk prices on the market for ice cream contained the following: "as a result [of the increase in milk prices], retail prices for ice cream are up 4 percent from last year. . and ice cream consumption is down 3 percent." source: john curran, "ice cream, they scream: milk fat costs drive up ice cream prices," associated press, july 23, 2001. based on the information given, what is the price elasticity of demand for ice cream?